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Essay about Barilla Spa Case Report

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Executive Summary As per our conversation last week I would like to revisit the idea originally brought to life by Brando Vitali before he was promoted to head one of our company’s new divisions overseas. In order to address the issue which will be a direct result of introduction of JIT Distribution system, I would like to present the issues and my recommendations to you before our meeting with Marconi’s executives to discuss JITD proposal. As the meeting is scheduled for the of November I would like to hear your thoughts on JITD before the end of this month so I can make appropriate changes to address any issues you might foresee as a direct result of our proposal. The decision to adopt the Just-in-Time Distribution will most likely…show more content…
DO’s expectations of frequent trade promotions were considered the only means to cost reduction during the “canvass” periods where distributors were able to buy as much product as desired to meet current and future needs. This is a well nurtured traditional system which took a lot of years to develop. Environmental and Root Cause Analysis Approximately 65% of Barilla’s dry products were supplied through outside distributors to supermarket chains and independent supermarkets who would eventually get the product into the hands of the ultimate user. Distributors would receive their product from one of the two Barilla’s central distribution centers (CDCs) where movement of product would be assessed based on its category which would be either “dry” or “fresh”. Barilla maintained different distribution systems for its dry and fresh products due to their differences in perishability and retail service requirements. Brando Vitali’s JITD proposal focused solely on dry products sold through Barilla’s distributors who I am going to examine. There is an industry culture around the supply and demand of Barilla products. Internal and external politics are at the root cause of the resistance to change around the distribution channels. There are issues that Barilla needs to address internally before the idea of JITD can come to life externally. Barilla’s sales and marketing personnel have expressed a range of concerns because this new philosophy could
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